After sudden disclosure of $250,000 school budget shortfall, Somerset district's business manager removed from duties

A sudden $250,000 shortfall in last year’s school budget has produced high-level finger-pointing and unclear direction in the Somerset School District, and the business manager was removed from his duties Thursday, officials said. “It was sprung on us,” School Committee Chairman Donal...

A sudden $250,000 shortfall in last year’s school budget has produced high-level finger-pointing and unclear direction in the Somerset School District, and the business manager was removed from his duties Thursday, officials said.

“It was sprung on us,” School Committee Chairman Donald Rebello said.

“Right now, we have no confidence in the individuals responsible for keeping us informed on the $250,000 deficit,” he said.

Substitute pay, special education transportation costs and a flurry of bills topping six figures seemed to account for the large deficit after fiscal 2013 ended.

While Rebello would not confirm that Marc Furtado, director of business, had been removed from duties, others did.

Medeiros, like Rebello, cited “personnel confidentiality” for declining specifics. But when asked what an inquiry to Furtado’s office today would bring, he said, “He is not in his office.”

“I don’t believe it was a suspension. I believe it was a paid administrative leave,” Vice Chairman Robert Camara said.

“I would have handled this differently,” said Camara, stating that the School Committee is responsible for hiring and firing the superintendent and business manager.

“I have been informed by the superintendent (in an email) that Marc Furtado will not be in his office,” said School Committeeman Victor Machado, also confirming a paid administrative leave.

He added that the email said, “He was being moved to the Berkley office.” That’s because Furtado also works for the regional school district, with Thomas Lynch as the Berkley superintendent and newly appointed regional district superintendent.

Furtado has been in the district for about a year and makes slightly more than $100,000, officials said.

The Somerset school budget is about $18 million.

At a lengthy meeting Tuesday night that went past 11 p.m. after a joint meeting with the regional school board on key issues, the Somerset School Committee received a report from Furtado detailing the estimated deficit, members said.

“Approximately $170,000 in invoices (were) brought to office in last week in June with no budget funds available to cover them and no encumbrances in budget,” said one issue for that month.

Another sheet Furtado presented to the committee said the substitute account was “$31,000 in the black on May 31” and ended up “81,000 in the red, a swing of $110,000 in a single month.”

Of that $81,000 substitute deficit, the South Elementary School accounted for $64,000 of it, while the paraprofessional substitute account had a $103,000 deficit, says the written report.

It also said special education transportation had a $130,000 deficit.

Furtado said he’d expressed concerns about those areas to the committee in May.

His report to the school committee recently was that the budget for fiscal 2013 would be “extremely close,” with a range of a $50,000 surplus to a $50,000 deficit.

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He also said there remained $100,000 to cover expenses coming in after May 15, and had recommended cutting off purchases.

Currently, there are expenses of $274,690, including a $3,100 “evaluation bill from May” that Furtado said was put on his desk Tuesday.

Medeiros, in a brief phone interview, indicated he’d been left in the dark until recently.

He said Furtado’s report to the school board on June 20 was the budget “was very tight but there were no issues.”

Medeiros said he “was aware of a deficit on Friday, June 28. That’s when Marc reported it to me.” At that time he was told “there may be some issues,” Medeiros said.

He said the deficit level was not precise, and he did not have “more accurate figures” until July 19, one week ago.

It was not clear from officials how this deficit will be resolved, except that they will work to find a remedy.

A tentative School Committee meeting is set for Tuesday night.

“I’m conducting an internal investigation into the fiscal 2013 deficit. I hope to have it completed by next week and give my determination of what action should be taken,” Medeiros said.

Some school board members sounded more displeased than others.

“The School Committee has many questions as to the apparent delay in conveying this information to the committee. We have very determined concerns as to why we were not informed,” Rebello said.

“We’re certainly upset about this, and clearly there needed to be better information coming from our central office,” Camara said.

“I am completely thrown off that our superintendent and business manager were not aware of this prior,” Machado said.

He put the lion’s share of the responsibility on Medeiros.

“At this point, it seems like the superintendent is not taking any responsibility,” he said.

It was unclear talking with these officials, as well as selectmen, whether a special Town Meeting will be held to resolve the deficit.